Transaction Advisory Services - Ernst & Young - United Kingdom

Despite an increasing focus on active cash management by many companies, our annual working capital report for 2009, (pdf, 1.4Mb) found that up to US$1 trillion of liquidity may still be tied up in working capital in 2,000 of the largest companies headquartered in the US and Europe.

How do private equity investors create value?
A study of 2008 European exits

A review of how PE created value in nearly 300 European businesses over the last four years could provide some insight into how the industry can build on its success and also overcome the challenges it now faces. Our latest study shows that these businesses had average annual growth in profits of 15% during PE ownership. Download the report  3.8Mb, September 2009

Divesting has always been an important part of corporate development but in today's economic climate it is absolutely central to corporate strategy. Our study (pdf, 17mb) of over 300 companies reveals that more than 50% of businesses are considering selling assets as part of their response to the downturn. Meanwhile, buyers with cash have a rare opportunity to acquire businesses that would not normally be sold at current valuations.

Any downturn will yield distressed investment opportunities. And the steeper and more prolonged the downturn, the more varied and attractive those opportunities should be. Yet in the current environment, there are many complicating factors to consider. Distressed investment experts Alan Hudson and Bob Ward argue the case for a shrewd and patient strategy. Read Distressed investment – the opportunities and pitfalls  196K, April 2009

Our Spotlight series focuses on the transaction landscape in India, China, Russia and CIS, Central Eastern Europe and Latin America. Read our analysis of the opportunity sectors and political considerations for each area, as well as the challenges facing anyone looking to do deals in these markets.